ContractsIntermediateDelaware Exam

Under a Delaware real estate contract, what is 'specific performance'?

AA penalty clause requiring a specific payment if the buyer defaults
BA court remedy compelling a party to complete a real estate transaction as agreed in the contractCorrect
CThe seller's obligation to make specific repairs before closing
DA clause requiring the agent to perform specific marketing activities

Why A court remedy compelling a party to complete a real estate transaction as agreed in the contract Is Correct

Answer B: A court remedy compelling a party to complete a real estate transaction as agreed in the contract

Specific performance is an equitable court remedy that compels a party to fulfill their contractual obligation — typically used in real estate because each parcel of land is considered unique. A buyer or seller may sue for specific performance when the other party breaches the purchase agreement.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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